Is Corpay Inc (CPAY) overvalued?
On Equity Rank's model estimate, CPAY trades close to its fair value (9% below it). Corpay Inc (CPAY) last closed at $455.16; the multi-method model fair value is $498.71.
| Price | Model fair value | Price vs model |
|---|---|---|
| $455.16 | $498.71 | 9% below |
What the answer rests on
- 4 of 8 valuation methods put CPAY's value above its price and 4 put it below, so the methods disagree.
- To justify today's price, CPAY's free cash flow would need to grow about 6.9% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 29.1% a year.
- CPAY trades at 24.7 times its last year's earnings, against a median of 31.4 for 87 profitable Software companies.
- Over the past year the price sat below the model fair value on 100% of trading days. The gap ranged from 44% below to 10% below the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind CPAY's fair value · What prices assume · Other companies